Yam Finance DeFi Platform Prevents $3.1 Million Heist
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
- Yam Finance DeFi protocol prevented a malicious government attack by hackers.
- The malicious attack’s main objective was to take control of the protocol’s governance mechanisms and financial resources.
- Hackers and cryptocurrency scammers have been focusing on decentralized finance (DeFi) protocols
Yam Finance DeFi protocol prevented a malicious government attack by a hacker. But the attack was intended to seize all of the money from the treasury. However, the DeFi system Yam Finance, which introduced its elastic supply token in the summer of 2020, is currently a top target for criminals.
According to people with direct knowledge of the situation, the Yam Finance (decentralized finance protocol powered by Ethereum) team discovered a protocol glitch last week (9 July), two days after a hacker had integrated a malicious governance proposal via internal transactions onto the platform to make it more difficult for the public to notice.
Yam Finance Stops the Attack
The malicious attack’s main objective was to take control of the protocol’s governance mechanisms and financial resources. Therefore, if the hackers had been successful, they would have been able to empty the whole funds in the Yam Finance treasury, which at the time totaled $3.1 million, as per the source.
Yam Finance’s Troubles
The project quickly gained popularity among yield farmers. It attracted $400 million in deposits from its early adopters. It was introduced during the 2020 crypto summer as a monetary design and protocol governance experiment.
However, the bullish trend in the network was short-lived. Hence, the defect in its unaudited smart contracts eventually caused the system to crash.
The team working on the project was able to secure $115,000 in funds, though, and they used it to do a rigorous security audit that allowed Yam Finance to relaunch.
DeFi Protocols Became Major Target For Hackers
Hackers and cryptocurrency scammers have been focusing on decentralized finance (DeFi) protocols as they tend to stop them from scamming. As a result, DeFi platforms alone lost more than $1 billion to cybercriminals in 2022. These attacks will continue until blockchain projects start giving their networks’ security and resiliency more consideration.
